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Civil police in Brazil’s Sao Paulo have cracked down on a money laundering operation leveraging cryptocurrencies, run by the Primeiro Comando da Capital, a notorious drug gang.
According to CNN, the PCC gang operated a cryptocurrency exchange that facilitated their money laundering efforts amounting to more than $88.6 million USD, approximately 500 million Brazilian reais.
The firm was registered in the name of a 23-year-old woman, who was not named but was reportedly the daughter of a city council candidate for Mogi das Cruzes.
During the raid, 55 million reais worth of checks were also seized from the company’s headquarters.
Further, the report added that the funds <a href="https://crypto.news/heir-to-cartier-empire-arrested-for-attempted-money-laundering-using-usdt/" target="_blank" rel="noopener noreferrer nofollow">laundered using cryptocurrencies</a> would be used to finance organized crime during the 2024 municipal elections.
As of now, the authorities have arrested 13 individuals linked to the scheme.
Cryptocurrencies have long been used as a tool by criminals and gangs in Brazil. Earlier this year, the Brazilian federal police dismantled a $2.6 billion <a href="https://www.occrp.org/en/daily/18355-brazil-arrests-man-suspected-of-laundering-nearly-us-2-66-billion#:~:text=The%20illegal%20business%20saw%20more,accounts%20of%20several%20shell%20companies." target="_blank" rel="noopener noreferrer nofollow">crypto-powered</a> money laundering operation.
You might also like: <a href="https://crypto.news/brazils-largest-bank-opens-crypto-trading-for-all-customers/" rel="noopener noreferrer nofollow"> Brazil’s largest bank opens crypto trading for all customers </a>
In June 2023, the Special Department of Federal Revenue of Brazil <a href="https://www.gov.br/pt-br/noticias/noticias/economia-e-gestao-publica/09/receita-e-policia-federal-combatem-lavagem-de-dinheiro-no-mercado-de-criptoativos" target="_blank" rel="noopener noreferrer nofollow">raided</a> six local cryptocurrency exchanges that had allegedly laundered $380 million worth of dirty money.
Later that year, a UK-based individual <a href="https://crypto.news/uk-fintech-exec-accused-of-laundering-crypto-for-brazilian-escobar/" target="_blank" rel="noopener noreferrer nofollow">came under investigation</a> for using cryptocurrencies to launder drug money via the crypto exchange Binance. The funds reportedly linked to Sérgio Roberto de Carvalho, an Interpol most wanted, often referred to as the “Brazilian Pablo Escobar.”
According to a <a href="https://gjia.georgetown.edu/2023/03/20/the-growing-use-of-cryptocurrencies-by-transnational-organized-crime-groups-in-latin-america/" target="_blank" rel="noopener noreferrer nofollow">2023 report</a>, the trend has been observed beyond Brazil among several criminal organizations across Latin America, including <a href="https://crypto.news/las-vegas-ceo-faces-127-years-for-crypto-laundering-linked-to-cartels-and-charity-fraud/" target="_blank" rel="noopener noreferrer nofollow">notorious cartels</a> like the Mexico-based Sinaloa Cartel and Central America-based MS-13.
The growing use of crypto in illicit activities hasn’t slowed down adoption in Brazil, which witnessed a <a href="https://crypto.news/how-latin-america-became-an-important-player-in-the-crypto-landscape/" target="_blank" rel="noopener noreferrer nofollow">30% surge in crypto trading volume</a> in 2024. Further, the nation’s central bank is expected to present digital asset regulations this year.
Capitalizing on the demand, Brazil’s largest bank, Itaú Unibanco, <a href="https://crypto.news/brazils-largest-bank-opens-crypto-trading-for-all-customers/" target="_blank" rel="noopener noreferrer nofollow">allowed the trading</a> of Bitcoin and Ethereum on its mobile app on June 12. Meanwhile, in March, asset manager BlackRock launched its <a href="https://crypto.news/bitcoin-etf-blackrock-brazil/" target="_blank" rel="noopener noreferrer nofollow">spot Bitcoin ETF product</a> in the nation.
Read more: <a href="https://crypto.news/bitcoin-etf-blackrock-brazil/" rel="noopener noreferrer nofollow"> BlackRock to launch Bitcoin ETF in Brazil </a>

Brazilian police arrest heads of cryptocurrency laundering scheme used by drug cartel

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